Corman will step down within a year

Morgan Stanley Chairman James Gorman plans to step down as CEO within a year, setting off a succession battle over one of Wall Street’s most dominant firms on Friday.

The bank’s board has narrowed its CEO search to three “very strong” internal candidates, Corman told shareholders at the New York-based firm’s annual meeting.

Gorman, 64, will assume the role of acting chairman “for a period of time” after stepping down as CEO, he said.

“The specific timing of the CEO transition has not been determined, but it is the board’s and my expectation that it will occur at some point in the next 12 months,” Gorman said.

“That is the current expectation in the absence of a major change in the environment,” he added.

Since taking over 2010, Corman has pulled off one of the most successful turnarounds on Wall Street. Morgan Stanley has reversed course after nearly turning upside down during the 2008 financial crisis to become a widely respected wealth management juggernaut through a series of savvy acquisitions.

The company’s investors have rewarded it with one of the best valuations among its big bank peers. This is because shareholders favor stable income streams generated by wealth and asset management rather than high volatile fees from trading and advisory businesses.

The announcement officially marks Corman’s desire to hand over the reins to another administrator. Gorman said publicly For the past few years he hasn’t planned to stay CEO long, joking on Friday that he won’t die while holding the title.

Corman has “no plans to move out Logan Roy,” the fictional CEO of HBO’s successor series, he told investors.

This story is developing. Check back for updates.